Northwest Savings parent reports drop in Q2 profit

The parent of Northwest Savings Bank in the Rochester market reported a nearly 18 percent decline in net income for the second quarter, falling short of analysts’ estimates.

Northwest Bancshares Inc. reported income of $15.3 million, or 15 cents a share, for the quarter ending June 30, down from $16.4 million, or 17 cents a share, a year ago.

Analysts polled by Thomson Reuters had projected earnings of 18 cents a share for the Warren, Pa.-based company.

“Although earnings for the quarter are disappointing, they were greatly impacted by several unusual items, including a $1.9 million write-down of a foreclosed property, $1.3 million in ATM replacement expense, and a $553,000 decrease in mortgage banking income,” President and CEO William Wagner said in a statement.

Positives for the quarter included a 1.4 percent increase in loans receivable, and a decrease in troubled assets as foreclosed real estate declined 11.5 percent, he said.

Northwest Savings Bank ranks 16th in the Rochester market with local deposits of $147.1 million at its five branches, data from the Federal Deposit Insurance Corp. shows.